What does a sharp profit booking in the last leg of trade indicate for Bank Nifty?

Bank Nifty opened around the 33,000 mark and made a low of 32,800 but at lower levels, buying interest was seen. As a result, the index made an intraday high of 33,594 and resisted around the 10-DMA.  

In the last leg of the trade, profit booking emerged and Bank Nifty slipped over 400 points from the day’s high, resulting in the formation of a shooting star kind of a candlestick pattern on the daily chart. It took support at 38.2 per cent retracement level from the previous day's low. It failed to close above the moving average ribbon on a 75-minute chart. In fact, the open interest declined 4.2 per cent on a 1.55 per cent positive day, which indicates the unwinding of positions. The future volume is higher. The rally was mainly driven by PSU banks. Going forward, a move above 33,310 would turn out to be a positive one for the index. However, a move below 33,063 can be negative, which can test the level of 32,890. Maintain a stop-loss at 33,189.